Pretium to acquire Deephaven

by Ryan Smith18 Jun 2019

Investment management company Pretium has announced that it has entered into a definitive agreement to acquire Deephaven Mortgage from Värde Partners.

Founded in 2012, Deephaven partnered with Värde in 2014 to fund its expansion in the non-QM space. Over the past five years, Deephaven has invested in more than $4 billion worth of non-QM loans, becoming one of the leading issuers of non-QM securitizations.

Pretium is an alternative investment management firm focusing on real estate, mortgage credit, and corporate credit. The firm has more than $10 billion in assets under management, and is the largest private single-family rental owner and operator in the country with more than 32,000 homes across 15 markets.

“We are excited to be acquiring one of the most established leaders in the non-QM market, and we expect the business to benefit from working closely with Pretium’s established single-family rental and mortgage credit businesses,” said Donald Mullen, founder and CEO of Pretium. “Deephaven is a synergistic, natural extension of Pretium’s existing strategies in single-family rentals and mortgage credit, within our residential credit ecosystem.”

“Deephaven was founded to serve the millions of creditworthy borrowers who would otherwise have been excluded from the mortgage market,” said Matt Nichols, founder and CEO of Deephaven. “We are grateful for Värde’s partnership in helping us build and establish a leadership position in the non-QM market. We are excited to join Pretium, continuing a tradition of partnering with organizations that share our vision for the mortgage market and commitment to responsible lending. We look forward to our partnership and the opportunity it will afford us to continue our leadership position in the high-growth non-QM market.”

Terms of the transaction were not disclosed. The acquisition is expected to close in the second half of 2019.